Paul Volcker in late 2017 started working on his memoir, which I was helping him write
The 90-year-old former leader of the Federal Reserve started his book with a self-deprecating joke about a wise old parrot known as “the chairman,” and insisted the title should be The Wise Old Parrot Speaks.
Understandably, the publisher’s marketing staff wasn’t keen on that.
Volcker traveled to a conference in Belgrade, where he watched Burns give a speech titled “The Anguish of Central Banking” declaring that central banks couldn’t adopt the tough policies necessary to fight inflation because of social and political opposition.
Volcker returned to Washington intent on proving Burns wrong.
Volcker had clearly come around to seeing monetarism as a potentially useful tool.
Its main downside—that it tied policymakers’ hands—could be an upside if it served to assure the markets that the Fed wouldn’t, indeed couldn’t, back down.
The Fed was forced to make a brief U-turn, easing access to money and credit, before resuming its inflation fight in the autumn of 1980.
In mid-1981 the economy went into another recession, the worst since the Great Depression.
By the summer of 1982, the inflation rate had fallen back into the single digits. Volcker, worried about the risks that a potential debt default by Mexico and other Latin American countries posed to US banks that had loaned billions of dollars to governments in the region, scrapped his brief flirtation with monetarism
Christine Harper Bloomberg 11 oktober 2022
Keeping At It: The Quest for Sound Money and Good Government
Mars 2020 Christine Harper (Författare), Paul A. Volcker (Författare)
Last week, I received a poignant invitation:
Paul Volcker, the legendary former chairman of the US Federal Reserve, asked me to visit his apartment to discuss his legacy.
Gillian Tett 25 October 2018
https://englundmacro.blogspot.com/2018/10/last-week-i-received-poignant.html
Arthur Burns “The Anguish of Central Banking”
https://englundmacro.blogspot.com/2022/09/arthur-burns-anguish-of-central-banking.html
Vad var det då som hände fredagen den 13 augusti 1982, som satte fart på världens aktiebörser.
Jo, det som hände den dagen var att Mexiko förklarade att man inte längre kunde betala sin utlandsskulder. Det var /den dåvarande/ skuldkrisens födelsedag
Paniken stod på lur, sammanbrott hotade västvärldens banksystem.
https://englundmacro.blogspot.com/2022/09/everyone-from-corporate-ceos-to.html
Volcker: “If I had known what was going to happen, I never would have done it.”
https://englundmacro.blogspot.com/2022/05/volcker-if-i-had-known-what-was-going.html
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